Skip to main content

Tim Brown: Going With Google

The search-engine giant can withstand any economic slowdown.
  • Author:
  • Publish date:

One week of NFL games down, 15 more to go, plus the playoffs.

My old team -- the Oakland Raiders -- took one on the chin last night against the Denver Broncos. But to me, probably one of the most interesting developments took place in the AFC East.

It's probably not news to any football fan that New England Patriots quarterback Tom Brady is done for the year after suffering a knee injury Sunday and Brett Favre grabbed his first win as quarterback for the New York Jets.

Now I have said in previous columns that I think this division could provide an interesting race and not to be surprised if the Pats lose a game or two within their own division. With one of the best quarterbacks in the league out, the playing field is leveled significantly.

Favre put the Jets in a position to win -- even if he didn't have his greatest game. And both the threat of the long ball and refurbished offensive line opened up the running game a bit as well. Jets running back Thomas Jones scored his first rushing touchdown of the season -- matching his total from a year ago.

There were a slew of injuries around the league as there always is, considering football is such a physically demanding sport. Some of them were more serious than others.

Tennessee Titans quarterback Vince Young went down with a sprained knee and surely will miss some time, while Tampa Bay Buccaneers quarterback Jeff Garcia sprained his ankle. Meanwhile, Kansas City Chiefs QB Brodie Croyle separated his shoulder, and Seattle Seahawks wide receiver Nate Burleson is out for the season with a knee injury. Even Jets kicker Mike Nugent is on ice with a thigh injury he suffered in the first quarter on Sunday. As a result, the Jets couldn't kick field goals and were unable to attempt extra points during most of the game.

It's a long season and injuries happen. The teams with the deepest bench and the best ability to adapt will come out on top. This philosophy flies when looking at stocks as well. I want a company that has enough resources and heft to weather any storm the market can throw at it -- one who has enough different ways to make money that a setback in one area isn't a death sentence.

That company today is behemoth


(GOOG) - Get Free Report

. It is well-positioned and acting very smart when it comes to the information technology market, one of the most important in the world.

Google's price has come down tremendously since its 52-week high of $747.27 that it hit in November 2007. The stock was recently trading at $421.28 a share. And it has plenty of positives to point to.

The company has more than $19 billion in revenue and is approaching $13 billion in the bank. Its operating cash flow is about $6.87 billion, while it has no debt. None!

Its return on equity sits at 21%, while it has nearly 80% institutional support, which gives me added comfort. Lastly, its price-earnings/growth ratio is just 0.72 and its forward price-to-earnings ratio is 17.73, which leads me to believe that investors have decent confidence in the stock, but not overwhelming belief in it right now.

Lastly, Google owns many businesses that it has not taken full advantage of yet. These areas can continue to help the company's future growth and to stay on top.

Keep moving the chains!

At the time of publication, Brown had no positions in stocks mentioned, although positions may change at any time.

Tim Brown played 16 seasons in the NFL, where he made nine Pro Bowls. After a brief stint with the Tampa Bay Buccaneers in 2004, Brown retired as an Oakland Raider. He was a Heisman Trophy winner in college for Notre Dame.